Your RRSP contribution line based on 71
I can understand your confusion, bob since you and your wife have converted your RRSPs into registered resigement income funds (RFRS). An RRSP account holder must accomplish that by December 31 of the yr during which he turns 71.
There is a spot in your NOA and in your CRA online account to report your RRSP room in order that the CRA provides your RRSP deduction limit, despite the fact that you are not any longer contributing to your RRSPS. If you might be older than 71, you may generally do nothing along with your RRSP room. That means there might be an exception.
Contribution to spouses -rrsps
If your spouse is 71 years old or younger, he or she will be able to open a spouse. A spouse -RRSP is an account that belongs to a spouse – type with lower income or younger – and contributed to the opposite spouse, who is often older or has the next income.
You could make RRSP contributions should you are older than 71 so long as you contribute to a spouse -rrsp for a younger spouse. If you do that, use your personal RRSP room and claim deduction for your personal tax return. The owner of the spouse -RRSP account holder will take the payouts in the longer term.
Can you have got an RRSP and a RRIS at the identical time?
Even if you have got already converted your RRSP right into a RFR, you may make RRSP contributions. This is because you may have unlimited RRSPs and Rrifs. If you exchange an RRSP to a RFR, you simply do that for this specific account. You do not have to convert all your accounts at the identical time.
You may even transfer your RRIF agent to an RRSP and stop RFrif with it should you are 71 or younger. Although that is unusual, it’s technically allowed.
The only time that you desire to contribute to an RRSP after converting your RRSPS in RRRSP is should you wanted to make use of an income or money and make a contribution and wanted to assert an RRSP deduction.
Unused RRSP contributions
Interestingly, you may contribute to an RRSP by the tip of the yr during which you might be 71 and take off. These non -used RRSP contributions can be available in the longer term without restrictions on age.
